According to the report, SVOD subscription revenues will grow by 24.4% a year from $131.6bn in 2023.
The global SVOD revenue will grow from $131.6bn in 2023 by 24.4% a year to $321.9bn in 2030, driven primarily by an influx of Asia-Pacific subscribers, according to a new report titled MIDiA Research video subscription forecasts 2023-2030 by MIDiA Research.
SVOD revenue increased globally from $84.8bn in 2021 by 24.6% in 2022 to $105.7bn. The growth was, however, down from the 46.6% increase seen in 2020 during the pandemic.
The revenues rose 24.6% year-on-year in 2022 and are expected to increase 24.4% this year to hit $131.6bn.
According to the report, North America will be accounting for 18.2% of global video subscribers and 38.6% of global streaming revenue in 2023. However, by 2030, North America’s share is expected to decrease to 13.2% of global subscribers and 32.2% of global revenue.
In contrast, the Asia-Pacific region is poised to continue its dominance in the industry, with 56.2% of global subscribers and 32.2% of global revenues in 2023, and 58.8% of global subscribers and 34.5% of global subscription revenues in 2030, overtaking North America to become the largest revenue market by 2030.
Disney is expected to remain in the lead globally, with Netflix in second place.
Commenting on the findings of the report, Tim Mulligan, Lead Video Analyst for MIDiA Research, said: “The subscription distribution dominance of Asia-Pacific will prompt intense competition from Western SVOD services, as they try to corner the world’s biggest regional market. Western SVOD content commissioning will be partly recalibrated towards Asian movies and shows that speak to global audiences. Efforts to discover the next Squid Game or Parasite will amplify Asia-Pacific culture globally to create a new golden age for Asian entertainment that will compete directly with Hollywood mainstream studio output.”
Perry Gresham, Forecast and Modeling analyst for MIDiA Research, added: “For the first time, we have created the MIDiA bear scenario, an alternative forecast that considers the case in which the current recession has more impact on video streaming subscriptions than we anticipate. It represents the scenario where, in a harsh 18-month recession, subscribers cancel some number of their subscriptions. Subscription growth over the next two years would be more than half. A post-recession rebound will eventually see the gap in subscriptions narrow to just below base—with recovery varying by region. North America and Europe remain the furthest below their base scenario in the years leading up to 2030.”
Ben Woods, Video Analyst for MIDiA Research, noted: “After eight years of steady expansion, global subscriber numbers will have neared their peak by 2030. That leaves Western SVOD services with a narrowing window of opportunity. With competition intensifying from indigenous services within Asia Pacific and emerging markets, gaining those remaining subscribers will be tough.”
